Estimating household demand for millet and sorghum in Niger and Nigeria, Series Paper Number 39

Cheng, Z and Larochelle, C (2016) Estimating household demand for millet and sorghum in Niger and Nigeria, Series Paper Number 39. [Socioeconomics Discussion Paper Series]

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Millet and sorghum are two important crops and source of calories for poor households in semiarid West and Central Africa. This research analyzes the response of household demand for millet and sorghum to income and prices in Niger and Nigeria using the latest Living Standards Measurement Study-Integrated Surveys on Agriculture (LSMS-ISA) data by a two-stage method. In the first stage, a Working-Leser model is estimated to obtain the elasticity of food expenditure with respect to household total expenditure. In the second stage, a Quadratic Almost Ideal Demand System (QUAIDS) model, incorporating household socio-demographic characteristics and regional dummy variables, is estimated for rural and urban households separately. Unconditional expenditure elasticities, own-price elasticities, and cross-price elasticities are obtained by combining the results of first and second stages. Results reveal that millet and sorghum are necessities for households in Niger and Nigeria. As income grows, household demand for the two crops will increase but at a lower rate than income growth in both countries. Demand for sorghum and millet among rural households is less responsive to income and price changes compared with urban households. Considering high population growth rate and increasing urbanization rate in the two countries, it is expected that total demand for millet and sorghum will continue to increase, but their share in household’s food budget will decline.

Item Type: Socioeconomics Discussion Paper Series
Divisions: RP-Market Institutions and Policies
CRP: CGIAR Research Program on Policies, Institutions, and Markets (PIM)
Series Name: Socioeconomics Discussion Paper Series
Uncontrolled Keywords: Millet demand, Sorghum demand, Quadratic almost ideal demand system, Niger, Nigeria
Subjects: Mandate crops > Millets
Mandate crops > Sorghum
Depositing User: Mr Ramesh K
Date Deposited: 24 May 2016 04:42
Last Modified: 03 Apr 2017 06:24
Acknowledgement: This study was funded by the CGIAR Research Program for Dryland cereals under a USAID Linkage Grant. We are grateful to Shoba Sivasankar, Director, CGIAR Research Program on Dryland Cereals, for facilitating this grant, and to two ICRISAT economists, Alphonse Singbo and Alastair Orr, who reviewed an earlier version of this report.
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